What happens when I want to sell my shared equity
property?

You should contact the administering agent
in the first instance.

If, for example, you have an 80 per cent stake in your property
when you want to move, then you will get 80 per cent of the selling
price when it is sold. The Scottish Government will receive the
remaining 20 per cent. The percentage you get is not affected by
changes in the value of your property over time. In this example,
if the value of your house increases, you will benefit from 80 per
cent of the increase. The other
20 per cent of the increase will go to the Scottish
Government. You should be aware that improvements you have made to
your home will be reflected in the valuation when you sell your
home and they will not be deducted from the value of your home.

Example

An example of when the value of
your property increases

Initial property value

£100,000

Your stake - 80 per cent

£80,000

Scottish Government's stake - 20 per cent

£20,000

Sale price

£140,000

You receive 80 per cent

£112,000

Scottish Government receives 20 per cent

£28,000

In this example, the value of your stake has
increased from £80,000 to £112,000.

The next example shows what happens if the value of your
property decreases.

Example

An example of when the value of
your property decreases

Initial property value

£100,000

Your stake - 80 per cent

£ 80,000

Scottish Government's stake - 20 per cent

£ 20,000

Sale price

£ 90,000

You receive 80 per cent

£ 72,000

Scottish Government receives 20 per cent

£ 18,000

In this example, the property value has fallen
by £10,000. You have an 80 per cent stake and make a loss
of £8,000 (80 per cent of £10,000).

If you have made any improvements to your home, these will
be reflected in the valuation. You will not be reimbursed
for the cost of any improvements made at your own expense. The
amount you sell your house for will be split in proportion to the
stakes help by you and the Scottish Ministers.

Example

An example of when you improve
your property

Initial property value

£100,000

Your stake - 80 per cent

£ 80,000

Scottish Government's stake - 20 per cent

£ 20,000

Improvements funded by you

£ 10,000

Sale price

£150,000

You receive 80 per cent of £150,000

£120,000

Scottish Government receives 20 per cent of
£150,000

£ 30,000

You should be aware that will you be
responsible for meeting all costs (including those incurred by
the administering agent and Scottish Ministers) when you sell
your home.